Motion for Permanent Injunction Denied; "Preliminary" Ongoing Royalty Rate Set

Mass Engineered Design, Inc. v. Ergotron, Inc., 2:06cv00272 (E.D. Tex. February 4, 2009)
Judge: Leonard Davis
Holding: Request for a Permanent Injunction or Ongoing Royalties DENIED
Judge Davis denied Dell's motion for a permanent injunction and also rejected the notion of an annual flat-rate royalty. He was also not happy with the briefing on future royalty rates.  "Both sides' briefing concerning a reasonable ongoing royalty rate fails to base suggested rates on actual economic analysis or evidence adduced at trial. . . . Any yearly flat-rate royalty amount is unreasonable and is rejected." The court "preliminarily" set an ongoing royalty of $4 per infringing unit and ordered the parties to confer concerning the "preliminary" per-unit royalty and to file objections if an agreement could not be reached.